1.The circumstances or conditions that surround one; surroundings
2.The complex of social and cultural conditions affecting the nature of an individual or community.
Hence, the environment is the conditions or the society that affects a person or the decisions he/she makes.
(points 1 and 2 taken from http://www.thefreedictionary.com/environment)
(points 3 and 4 taken from http://www.macmillandictionary.com/dictionary/british/environment)
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